Multiple Choice Single Answer As per the reports and the letter of intent filed with SEBI, what

amount is expected to be paid from the primary market during this year? Correct Answer 15000 crores Select The Blank Question A mutual fund scheme shall not invest more than ________ of its NAV in unrated debt by a single issuer. Correct Answer 0.1 Select The Blank Question Securities offered in a pledge can change if a ________ agrees. Correct Answer Pledgee Select The Blank Question AA rated companies can raise ________ of its net worth. Correct Answer 2.5 times Select The Blank Question In the book building process pricing is determined on the basis of ________. Correct Answer Investor feedback Multiple Choice Multiple Answer Question What is Sweat equity ? Correct Answer Equity shares issued by the company to the employees , Issued to directors at a discount , For consideration other than cash for providing now Multiple Choice Single Answer Question An AMC fees :Correct Answer To be borne by the individual schemes Multiple Choice Multiple Answer

Question What are the objectives of NHB? Correct Answer To promote, establish, aid in promotion and support of housing finance institutions , To make loans advances or render any other form of financial assistance to focusing finance institutions , To guarantee financial obligations

Multiple Choice Multiple Answer Question What are participatory notes? Correct Answer Instruments used by foreign funds , Instruments used but investors not register with SEBI , Investors interested in taking exposure in Indian securities Multiple Choice Multiple Answer Question When can an offer be withdrawn? Correct Answer Statutory approvals refused , Sole acquirer being person died , Circumstances as in opinion of board True/False Question MIBOR is a security. Derivatives based on this interest rate have legal recognition under SCRA. Correct Answer False Select The Blank Question For issues upto Rs. 50 crores the number of lead managers will not exceed ________. Correct Answer 2 Match The Following Share buy back is a way of Returning surplus cash to the shareholders Dutch Auction Price of the Buy back is done by the shareholders

Open market purchases No minimum price stipulation Companies holding more than 90% equity Can be delisted

Multiple Choice Single Answer Question Under section 11 B of SEBI act how many issuers were debarred? Correct Answer 1 Select The Blank Question The continuing growth in ________ was one of the factors that contributed to the growth of credit rating. Correct Answer Information technology

Multiple Choice Single Answer Question What do you understand by capital markets ? Correct Answer Market for long term funds and investments in long term instruments

Select The Blank Question In February 2004, UTI sought permission of SEBI to prematurely close ________ schemes. Correct Answer 7

Multiple Choice Multiple Answer Question What are the limitations of refinance facility? Correct Answer Cannot exceed 5 times NOF , Not to exceed 50% of total Loan funds of HFCs , Not to

exceed 15 % of NOF of NHB Multiple Choice Single Answer Question What is the amount invested by the FIIs in the Indian Capital market? Correct Answer US$14 bn

True/False Question The buy back of shares by Indian corporates has been very successful in India. Correct Answer False Select The Blank Question The NSE Nifty index comprises of ________companies. Correct Answer 50 Multiple Choice Single Answer Question Who is required to make a public announcement ? Correct Answer Acquirer Multiple Choice Multiple Answer Question What are the norms for Approval of Housing finance companies by NHB? Correct Answer Minimum paid up capital 1 crore , At least 2 directors , Any appointment of auditors Multiple Choice Multiple Answer Question What are the major factors influencing portfolio decisions? Correct Answer Investor characteristics , Liquidity needs and tax considerations , Investment and interest rate risk

Multiple Choice Single Answer Question What was the reason for not introducing rolling settlements earlier in India?

Correct Answer Lack of depositories

Multiple Choice Single Answer Question What is the main objective of the promoting Discount and finance house of India (DFHI) ? Correct Answer Increasing transactions of money market assets

True/False Question A portfolio manager need not necessarily sell or purchase securities separately for each client. Correct Answer False Multiple Choice Multiple Answer Question During the budget 2003 04, Finance Minister made some announcements which he hopes will make investors think in terms of returning to stock market :Correct Answer No capital gains tax on investment made in equity after 1/3/03 held for 1 year , Removal of income tax on dividends in the hands of receiver

Multiple Choice Single Answer Question What is the time frame to submit a report to SEBI for acquisition transactions arising out of firm allotment in public issues right issues etc? Correct Answer 21 days Multiple Choice Multiple Answer Question Who can buy or sell securities on containing the certificate of registration? Correct Answer Underwriter , Merchant banker , Investment advisor

Multiple Choice Single Answer Question Which company was responsible for spreading the equity culture in India ? Correct Answer Reliance Industries

Multiple Choice Single Answer Question When is the share of the target company deemed to be frequently traded Correct Answer If the turnover in the preceding 6 months prior to the month in which PA is made is m ore than 5% Multiple Choice Multiple Answer Question What are the facilities offered by NSDL? Correct Answer Enable surrender and withdrawal of securities to and from the depository , Maintain the investors holdings in an electronic form , Effect settlement of securities traded on exchanges Multiple Choice Single Answer Question What is a Point of sale terminal? Correct Answer Mechanism for collecting debit card payments

Multiple Choice Multiple Answer Question What must be the quality of a good portfolio manager? Correct Answer Sound General knowledge , Analytical ability and marketing skills , Experience

True/False Question SEBI can investigate and inspect books of accounts and records of insiders. Correct Answer True

True/False Question The depository can legally transfer beneficial ownership. Correct Answer True True/False Question The issue price for placement portion and net offer to public are not the same. Correct Answer False Multiple Choice Single Answer Question What is Discretionary Portfolio management service ? Correct Answer Client gives his money for investment to the portfolio manager and leaves it to him to make all the investment decisions. Select The Blank Question In case of a public issue by a listed company participation by promoters in the proposed issues in excess of the required minimum percentage shall also be looked in for a period of ________. Correct Answer 1 year

True/False Question RBI has permitted all commercial banks, financial institutions and large corporates to issue certificate of deposits. Correct Answer False

Match The Following Question Correct Answer Your Answer Charge card

Form of plastic money Warning Bulletin Authenticity test Credit information company SBI, HDFC bank

Credit card issuing company Visa/Master Card Ques1:- In India there are presently _____ companies, in the business of Credit Rating? Ans:- 4 Ques2:- Dematerialized shares have distinctive numbers. Ans:- False Ques5:- The person who changes the composition of securities? Ans:- Fund Manager Ques6:- Qualities of a merchant banker? Ans:- Knowledge and information about various aspects of the capital market, Ability to evaluate and analyse the various aspects, Update their knowledge Ques7:- Which company come out with a unique product called bonus debentures? Ans:- Hindustan lever Ques8:- The venture capital can flourish only when there is a well developed _______________? Ans:- Capital market Ques9:- The report is required to be submitted to SEBI along with a fee of Rs.________ /report. Ans:- 10,000 Ques10:- The amount of net worth a company should have for opting for an Ans:- 1 crore IPO is

Ques12:- The company should have a track record of dividend payment of 3 years out of the immediately preceding 5 years. Ans:- True

Ques13:- Precautions to be taken with respect to delivery instruction slip? Ans:- DIS number must be pre-printed, account number must be stamped, target account id be filled Ques14:- Regulations for venture capital funds are Ans:- VCFs must be registered, VCFs cannot carry on any other activity, VCFs must disclose the investment strategy Ques15:- Minimum post issue capital of a company should be ? Ans:- 10 crores Ques16:- Letter of offer is? Ans:- document addressed to the shareholders, containing disclosures of the acquirer/PACs, offer price Ques17:- HFCs disbursement on project lending is restricted to? Ans:- 30% Ques18:- Match the following:Business analysis determinates of revenue growth Market position nature and basis of competition Operating advantage technology risk Financial risk interest coverage Ques19:- The acquirer is required to appoint _________ before making a PA. Ans:- Merchant banker Ques22:- The person responsible for maintaining Escrow account in securitisation? Ans:- Trustee Ques24:- A Commercial paper is ? Ans:- short term financial instrument, Means of raising short term debt issue,

CAPITAL MARKET (Total SET 16) Match 1) Portfolio Factors influencing portfolio decisions Code of conduct- Portfolio Manager Collection of assets Business and Market risks Observe high standard of integrity and fairness

SEBI Regulations

Portfolio Manager must fulfill the capital adequacy norms

2) 3) Ready forward transaction (Repo) Commercial paper STCI Market stabilsation Bonds 4) 5) Shareholders Objective of Audit committee

Interbank sale and repurchase of securities Means of raising short term debt by companies Operations in call money markets Launched in fiscal 2004-05

should effectively participate in general body meetings Look into defaults to depositors creditors shareholders and debenture holders Superficial commitment to vision, mission and values Assisting the board in decision making process

Reasons of failures of corporate governance in spite of norms Functions of Chief Executive, ED, Managers

6) Castrol MS Verma committee Hero Honda VSNL 7) Looses the rights to vote Book building Depository First to introduce rolling settlements in shares

FY 2003 03 Dividend Rs145 crores Dual Flotation FY 2003 03 Dividend Rs187 crores FY 2003 - 03 Dividend Rs172 crores

Non voting Bharati Televentures Bank of securities NSE

the country 8) 9) 10

HDFC foreign currency deal Global investors pumping funds in India Specific Funds FII current free float sensex company FII free float stock NIFTY companies Global investors pumping funds in India Specific Funds

0.57 0.45 $ 476 mn

10) ESPS Sweat equity Stock lending mechanism ESOP 1!) 0.1 0.15

Stock option method Share issue for consideration other than cash Introduced by SEBI in 1997 Recipe to make employees millionaires

Government decided to pay dividend MF cannot invest as percentage of NAV in debt instrument issued by single issuer To be audited by auditor Current shortfall in UTI schemes

Annual statement of accounts of MF Rs. 8000 crores

12) 1995 9/1/2001 4/1/2001 11/1/2001

MS shoes scam SENSEX touched low of 2600 Tata finance scam came to light Reliance sale of 10.5% stake in L&T to grasim

13) Rematerialisation

RRF

NSE RBI Non corporate benefit

Settlement cycle T + 3 Gilt securities mobilization Bonus

ALL NUMBERS RELATED QUESTIONS

Q As per RBI regulation, bank borrowings should not exceed how many times of the net owned funds? Correct Answer 4 times Q The refinance made available to any HFC is not to be more than :Correct Answer 60% of its outstanding housing loans Q What is the percentage of restriction on HFC's disbursement on project lending for refinance ? Correct Answer 0.3 Q How many times Refinance cannot exceed net owned funds of Housing finance companies? Correct Answer 5 times Q For an approval of HFC one of the norms is that the promoter's contribution has to be minimum ________ of paid up capital. Correct Answer 0.3 Q What percentage of funds should be invested in unlisted companies? Correct Answer 0.74 Q What is the eligibility norm for an unlisted company for making an public issue as regards to its net worth? Correct Answer Net worth of the company should not be less than 1 crore Q No mutual fund under all its schemes should own more than ________ of any company's paid up capital carrying voting rights. Correct Answer 0.1 Q Since when have the Indian Stock markets risen ? Correct Answer 3 june 2003 Q What is the estimated figure of credit card defaults in India? Correct Answer 800 crores Q How many members are appointed by the central government? Correct Answer 2 Q How much should be the minimum post issue capital of the company? Correct Answer 10 crores Q What is the minimum number of days for which the bid should remain open in book building? Correct Answer 5 days

Q What was the percentage of public offering under the IPOs through the book building method ? Correct Answer 0.1 Q What is the amount of net worth accompany should have for opting for an IPO ? Correct Answer 1 Crore Q What is the amount of net tangible assets, company should have to make an IPO? Correct Answer 3 crores Q In case of an IPO of any security of issue size of Rs________ or more security shall be issued only in demat form. Correct Answer 10 crores Q Of the net tangible assets how much percentage of assets should be held in monetary assets for a company to make an IPO? Correct Answer 0.5 Q Deposits can be accepted for a maximum period of :Correct Answer 5 years Q How much should be the minimum net worth of an AMC? Correct Answer Not less than 10 crores Q For a VCF to be registered with SEBI what is the registration fee ? Correct Answer 5 lacs Q What is the limit for aggregate investment of FII's NRI's and OCB's? Correct Answer 0.3 Q The acquirer is required to make the PA within ________ working days of entering into an agreement to acquire shares or deciding to acquire share's voting rights of target company. Correct Answer 4 Q Under various SEBI regulations how many brokers suspended? Correct Answer 8 Q An acquirer who holds 15% or more but less than 75% of voting' rights can acquire such additional shares as would entitle him to exercise more than ________ of voting rights in an financial year. Correct Answer 0.05 Q The Merchant banker will incorporate in the letter of offer the comments made by SEBI and then send within ________ days from the date of PA to all shareholders whose names appear in the register of the company. Correct Answer 45 Q Directors should not be member of more than________ committees. Correct Answer 10 Q An acquirer who holds ________ shares or voting rights of a target company can acquire further shares only after making PA to acquire at least additional 20% of target company from the shareholders through an open offer.

Correct Answer 0.75 Q When is the security created from the date of issue of debenture? Correct Answer Within 6 months Q What is maximum percentage of regular expenses of the assets of a scheme? Correct Answer 0.03 Q A rated company can raise deposit worth how many times its net worth? Correct Answer 4 times Q What percentage of underwriting in the issues obligatory to the merchant bankers? Correct Answer 0.05 Q Upto what percentage has the RBI permitted the banks to invest in the capital market ? Correct Answer 0.05 Q How much percentage of company's revenue would be accounted for by the business with new name? Correct Answer 0.5 Q What is the minimum offer an acquirer can make ? Correct Answer Min 20% Q Renewal of portfolio fund on maturity shall be deemed as a fresh placement for a minimum period of :Correct Answer 1 year Q Among the closed schemes, 4 long term assurance schemes were launched with a return ranging between ________. Correct Answer 13 - 14% Q The process of share buy back must be completed within what period from the date of passing the resolution? Correct Answer 12 months Q What is the time frame stipulated by SEBI for members intending to avail of the buy back offer? Correct Answer Minimum 15 days and not exceeding 30 days Q Recently, SEBI has allowed buy back of shares upto ________% of the total shares without requirement of a special resolution Correct Answer 10 Q When did the trading in foreign currency options start in India? Correct Answer 37809 \ 7 july 2003 Q In the L & T reliance case, Reliance was fined ________. Correct Answer Rs. 5 lacs Q Most of the deals struck on the fist day of foreign currency options were of ________ maturity. Correct Answer 1 year

Q The liability of the underwriters in the MS shoes case was estimated to be ________. Correct Answer Rs. 500 crores Q How many points the sensex went up in January 2000 during the ketan parekh scam? Correct Answer 700 points Q The capital Adequacy ratio for NBFC's has been fixed at :Correct Answer 0.12 Q A significant portion of the investment through the participatory notes is managed by ________ entities. Correct Answer 114 Q February UTI sought permission of SEBI to close 7 assured plans prematurely. Correct Answer True

Question Information technology, communication and entertainment represent ________ stocks. Correct Answer ICE Question The public cannot give their complaints or comments on the issuer company or others connected with the issue to SEBI. Correct Answer False Question In order to dematerialize the securities one has to fill DRF. Correct Answer True Question What are the obligations of a company in a share buy back? Correct Answer The offer letter should contain true, factual and material information and should not be misleading. , The company must pay the consideration only by the way of cash , The company should not issue any fresh securities including bonus shares till the date of the closure of the offer. Question The DP opens investor account in the system and gives an account number also known as ________. Correct Answer BO ID Question What are the factors that determine the value of a firm? Correct Answer Degree of popularity of the industry , Overall economic condition , Demand and supply capital Question The right to buy is called ________. Correct Answer Call option Question Who is responsible to get the securities listed on all the stock exchanges? Correct Answer Merchant banker Question A mutual fund scheme shall not invest more than ________ of its NAV in unrated debt by a single issuer. Correct Answer 0.1

Question Describe the regulatory aspects of mutual funds :Correct Answer The Asset management company shall not launch any scheme till approval of trustees and offer document has been filed with the board , With each offer document pay filing fees , Offer document to contain disclosures Question Describe in brief the SEBI regulations for venture capital funds :Correct Answer Must disclose investment strategy , VCF's must be registered , Cannot carry out another activity Question Money market mutual funds are not permitted to invest in treasury bills and commercial paper. Correct Answer False Question When can the American style option exercised? Correct Answer On or before the expiry date Question A portfolio manager has to assure a guaranteed return to his client. Correct Answer False Question Depositary facilitates transfers without having to handle money. Correct Answer False

Question Describe E-trading :Correct Answer Screen based trading in place of traditional ring , Communication through the net , Operate in stock market privately through home or office Question What are the eligibility norms for an unlisted company for making a public issue? Correct Answer Pre issue net worth not less than 1 crores in the last 3 years , Track record of distributable profits for at least 3 years , Issue size shall not exceed five times of its pre issue net worth Question Markets have moved away from Badla system to ________ . Correct Answer Derivatives Trading

Question Which acts were amended to remove some of the hurdles to corporatisation and demutualisation of stock exchanges? Correct Answer SCRA , Depository Act

Question Which companies have eroded market capitalization by Rs20 000 crores? Correct Answer Infosys , Satyam , Wipro

Question Amendment to SCRA will facilitate derivatives trading in interest rate futures and options if there is an underlying asset. Correct Answer True Question What are the major factors influencing portfolio decisions? Correct Answer Investor characteristics, Liquidity needs and tax considerations, Investment and interest rate risk Question What is dematerialization ? Correct Answer Physical certificates converted into electronic from , Credited into investors account with his/ her DP Question ________ is in the form of a usance promissory note payable after 45 days from the date of issue. Correct Answer Certificate of Deposit Question Which company was responsible for spreading the equity culture in India ? Correct Answer Reliance Industries

Question What is the amount of net worth accompany should have for opting for an IPO ? Correct Answer 1 Crore Question The process of securitization involves transfer of assets to a person specially created called as ________. Correct Answer Special purpose vehicle Question A mutual fund shall not invest more than 10% of is NAV in equity shares in cases of open ended schemes. Correct Answer True Question What is a put option? Correct Answer Right to sell Question Venture capital finance is risk finance for entrepreneurial growth oriented companies. Correct Answer True SET 3

Question Employee stock option scheme granted to the employee is transferable. Correct Answer False Question The following are some of the regulations governing the NBFC's issued by RBI :Correct Answer Without the registration certificate no company can undertake activities of NBFC , All companies must be liquid assets equal to 15% of deposits , All the NBFC's must register with RBI Question Transactions that involve substantial payment towards goodwill, brand equity or intellectual property must be placed before the board of directors as per the recommendations of the Kumarmangalam Birla report. Correct Answer True Question In the wake of boom of which sector the Indian mutual fund launched various sector specific schemes? Correct Answer Software Question In 2001 a case of rigging and short selling based insider trading was noticed in the case of proposed merger of ________. Correct Answer UTI Bank with GTB Question ________ are a kind of portfolio schemes. Correct Answer Mutual funds

Question What is equipment leasing ? Correct Answer Contractual agreement where the lessor of equipment transfers the right to use the equipment to the lessee Question Mergers and amalgamations of companies are also covered under the SEBI regulations 1997. Correct Answer False Question If the unlisted company does not satisfy the criteria of net worth profitability and issue size how can it come out with a public issue? Correct Answer Through book building process Question Which is the favorite destination for venture funds? Correct Answer BPO Question Who issues participatory notes? Correct Answer Associates of India based foreign brokerages , Domestic institutional brokerages Question What are the norms for Approval of Housing finance companies by NHB? Correct Answer Minimum paid up capital 1 crore , At least 2 directors , Any appointment of auditors Question Acquisition finance, which provide funding for acquiring another company are often closely held or fairly owned. Correct Answer True

Question What is the objective of public announcement? Correct Answer Ensure that the shareholders of the target company are aware of the exit opportunity available to them Question If the credit rating is obtained from two different agencies in case of issue of debt instruments, all the ratings need not be disclosed in the document. Correct Answer False Multiple Choice Multiple Answer Question How does SEBI react to the Scams in participatory notes issuance? Correct Answer Tighten FII regulations , Ensure participatory notes not misused by NRI , OCB controlled by Indians promoters Question When one decides to have the shares in an electronic form one has to approach ________. Correct Answer DP SET 4 Question Which Act defines the term Stock Exchange? Correct Answer Securities Contract Regulation Act Question What are the preconditions for trading on the net? Correct Answer A net connection , A registered account with a broker and a demat account , Bank payment gateway or online banking facility

Question Sweat equity shares are shares issued by company to employees or directors to discount. Correct Answer True Question Who forms the Asset management company (AMC)? Correct Answer Group of trustees Question The portfolio manager has to place the funds of all their clients in a separate account to be maintained by them with ________. Correct Answer Scheduled Commercial Bank Question Under which regulation is reporting mandatory in respect of acquisitions arising out of firm allot meant in public issues and rights issues etc? Correct Answer Regulation (3) 4 Question Book building is a process whereby the price is determined on the basis of actual demand as evident from the offers given by the various institutional investors and underwriters. Correct Answer True

Question The Money market mutual funds (MMMFs) can invest the funds in which of these securities? Correct Answer Call/notice money Question What is the information to be placed before the board of directors as per the Kumarmangalam report? Correct Answer Annual operating plans , Capital budgets , Quarterly results Question Bidder cannot revise his bids. Correct Answer False Question What are ESOP's ? Correct Answer One of the methods of giving part ownership of the company to the employees , Employees can take part in the prosperity of the company , Is a reward and linked with the increase in the prices of the shares Question While structuring the deal the entrepreneur seeks ________. Correct Answer Voting control Question DRR is treated as part of general reserve for consideration of bonus issue of proposals. Correct Answer True Question What precautions are to be taken with respect to delivery instruction slip ? Correct Answer DIS numbers are pre printed , Account number to be stamped , Investor should fill in target account id Question Reliance group has added over 10000 crores in market capital. Correct Answer True Question The appointment of a ________ is mandatory in a offer process. Correct Answer Merchant Banker Question To make a public announcement the acquirer has to appoint :Correct Answer Merchant Banker Question What information is required to be furnished to stock exchanges in compliance of SEBI regulations 1997 ? Correct Answer Details of proposed acquisition need to be filed with Stock exchanges at least 4 days before the date , Any person holding more than 15% but less than 75% voting rights shall be disclosed with 2 days , Annual disclosures Question The merger of GTB and UTI was called off due to intervention of ________ Correct Answer SEBI and RBI Question The benefits of availing depository services are :Correct Answer No stamp duty , Reduction in paperless work , Reduction in transaction cost Question Briefly describe the SEBI guidelines for the merchant bankers :Correct Answer Should have an authorization from SEBI , Expertise good financial standing and

high degree of professional integrity , Company abides by the various requirements relating to disclosers, listing of instruments etc Question Largest deal struck on Day 1 of foreign currency option got underway in India was of ________. Correct Answer Standard Chartered Bank Question A custodian can transfer beneficial ownership legally. Correct Answer False Question What is issued by mutual funds? Correct Answer Units Question Who prescribes the format of application for various reports or documents ? Correct Answer SEBI Question What is the objective of a credit information company? Correct Answer To ascertain the credit worthiness of individuals/organizations and make the data available to all banks Question How is price determined in an open offer? Correct Answer Negotiated price , Price paid by acquirer , Average weekly high low of closing share of the target company Question As per SEBI regulations, PMS must not be involved in any litigation connected with ________. Correct Answer Securities markets Question ISIN is a unique identification number for security. Correct Answer True Question Merchant bankers do not have to sign in the prospectus but they have to give a certificate to which entity ? Correct Answer SEBI Question Where is the difference in buying and selling dematerialized shares ? Correct Answer Process of delivery , Receipt of securities , Pledging the shares Question The features of mutual Fund are :Correct Answer A trust that pools in savings and funds from large number of investors who have common financial goal , Issue units to investor which represent right in assets , Investments in mutual funds may be in the form of stock, bond, money market securities Question What are the requirements regarding promoter's contribution and lock in? Correct Answer In case of IPO, promoters have to necessarily offer at least 20% of the post issue capital , In case of listed company promoters shall participate either to extent of 20% of proposed or post issue , In case of any issue of capital the minimum contribution shall be locked in for a period of 3 years Question At the inception of the hire purchases transaction the finance company records the hire purchase installment receivable as current asset.

Correct Answer

True

Question What are the stages in the process of book building broadly divided into? Correct Answer Syndicate formation , Issue process Question What is an offer letter? Correct Answer Document addressed to the shareholders , Containing disclosures of the acquirer / PAC target company , Offer price Question What is the main objective of credit appraisal ? Correct Answer Assess the repayment capacity Question Which stock exchange was used by ketan parekh for buying operations? Correct Answer Kolkatta Question It is the responsibility of the ________ to ensure the timely refunds and allotments of the securities. Correct Answer Lead managers Question What was the objective of the Kumarmangalam Birla Committee on Corporate Governance? Correct Answer Enhancement of the long term shareholder's value at the same time protecting the interests of the other shareholders Question Apart from the portfolio management fees what percentage of returns can the portfolio manager share from their client's profits? Correct Answer 0 Question What is the procedure for action in case of default? Correct Answer Suspension of the certificate , Mutual fund / AMC cease to exist , Subject to the directions of the board with regard to records Question Hire Purchase transactions are liable to ________. Correct Answer Sales tax Question One of the process of book building is that the issuer appoints a ________ also known as the book runner. Correct Answer Lead manager Question With the introduction of ________ accounts the complaints about allotment have surely gone down. Correct Answer DEMAT Question What was the percentage of public offering under the IPOs through the book building method ? Correct Answer 0.1 Question Companies are not allowed to buy back securities :Correct Answer Through any/ own subsidiary company , Through any/group of investment company , If default subsists in respect of repayments of deposits, term loans to any financial

institutions and redemption of preference shares or debentures Question The continuing growth in ________ was one of the factors that contributed to the growth of credit rating. Correct Answer Information technology Question Crisil's AAA rating stands for :Correct Answer Highest safety Question What is transposition cum demat form? Correct Answer Helps in effect change in the order of names , Dematerialize the securities Question Mutual funds can do investments in any security issued by way of private placement by an associate or group company of the sponsor. Correct Answer False Question The lease agreement provides for a transfer of ownership to the lessee either at the end of the period or during the period of lease. Correct Answer False Multiple Choice Multiple Answer Question What are the eligibility norms for a listed company for making a public issue? Correct Answer If the issue size is less than five times pre issue net worth , If the issue size is more than or equal to five times pre issue networth then the listed company to take book building route , 60% of issue size to be allotted to QIB's Question When is the public announcement required to be made? Correct Answer In case of indirect acquisition or change in control, the PA shall be made by acquirer within 3 months of conummation of such acquisition , The offer prices in such case shall be determined with reference to date of public announcement Question The following are some of the procedures of converting physical holding into electronic form :Correct Answer Surrender certificates to DP , DP intimates request to depositary , DP submits the certificates to registrar Question The setting up of NSE consists of:Correct Answer Set up by IDBI , Equity paid up capital of Rs25 crores , Started operations in June 1994 Question Constant change would be one of the reasons for failure of corporate governance. Correct Answer True Question The service charge is levied for allowing subscribers for entry into or exit from mutual schemes is called as ________. Correct Answer Load Question What is the main advantage of a rolling settlement? Correct Answer Quicker payments

Question Who suffered heavy losses during bad times of stock markets? Correct Answer Small investors Question The acquirer is required to appoint a merchant banker before making a PA. Correct Answer True SET 8 Question What was the objective of setting up the Securities Trading corporation of India Ltd? Correct Answer To promote secondary market in government securities Question What are the salient features of Hire Purchase ? Correct Answer Finance company purchases the equipment supplier and lets it on hire , During the contract hirer can opt for an early repayment and purchase the asset , Hirer may be required to make down payment Multiple Choice Single Answer Question Who takes risk at the time of investment ? Correct Answer Investor Question A credit card is a payment mechanism which enables the holder to buy goods and services on credit. Correct Answer True Question Final prospectus in the book building p________ess is to be filed with the ROC. Correct Answer ROC Question A company with highly rated instrument has the opportunity to ________ by quoting less interest rates. Correct Answer Reduce the cost of borrowing Question A portfolio manager could undertake the following on behalf of his clients :Correct Answer Hedging and arbitrage transactions Question The SEBI guidelines do not make it mandatory for the securities purchased under the buy back arrangement to be extinguished and physically destroyed. Correct Answer False Question As per the recommendations of the Kumarmangalam Birla committee report who are the key components of an audit committee. Correct Answer Board , Internal auditor , External auditor Question What are the different kinds of stock exchanges in India? Correct Answer Voluntary non profit making organizations , Joint stock companies limited by shares , Joint stock companies Limited by guarantee Question Describe the stock lending mechanism:Correct Answer Involves two parties one who is willing to lend and other who wishes to borrow

securities at market related rates , Lender is assured of getting equivalent the relevant securities by NSSCL on the settlement date , Lender gets benefit of reasonable return called lending fee Question Recently many banks have started issuing ________ which could also be used as a debit card. Correct Answer ATM card Question A ________ means any persons connected with a company and who is reasonably having access to unpublished price sensitive information. Correct Answer Insider Question What is the system of rolling settlement prevalent in the USA ? Correct Answer Transaction + 3 Question What is the most important objective for an investor? Correct Answer Protection of the value of the investment Question What do you mean by venture capital? Correct Answer Providing seed, start up capital and first stage financing Question The Kumarmangalam Birla report stressed on the importance of ________ with respect to AGM's. Correct Answer Proxy voting / ballot systems Question What are the SEBI guidelines for issue of debt instruments? Correct Answer Credit rating , Maturity more than 18 months appoint debenture trustee , Debenture redemption reserve to be created Question Explain the important achievements of SEBI :Correct Answer Takeover code formulated , Proper disclosure to investors through prospectus mandatory , Guidelines for merchant banker Question What is the procedure to make a public announcement ? Correct Answer Acquirer to appoint a Merchant Banker , PA to be made through Merchant Banker , PA to be made within four working days of entering an agreement to acquire shares Question What is the status of Stock exchanges today? Correct Answer Joint stock companies Question Correct Answer What is government's move towards Stock Exchanges ? Demutulisation

Question How much should be the minimum post issue capital of the company? Correct Answer 10 crores Question Correct Answer Question What should be done if the address of investor changes? Inform DP and update records , Inform different companies

When did the concept of corporate governance evolve?

Correct Answer

During the watergate scandal

Question What is the underwriter paid ? Correct Answer Commission Question How is a share buy back a useful mechanism in preventing hostile takeovers? Correct Answer Share buyback reduces the floating stock in the market thereby reducing the scope for a raider to acquire enough stock to gain management control. Question Correct Answer cost of bad debts What are the likely costs incurred by a credit card issuing bank? Membership fees to visa/MasterCard , Marketing cost , Administrative cost and

Question What does SEBI do with its power ? Correct Answer Cancel certificate issued to custodian , Inspect books of DP , issuers or beneficiary owners , Investigate an acquirer Question What are the features of a Certificate of deposit? Correct Answer It is a document title to a time deposit , Freely negotiable and marketable , Can be issued only by commercial banks Question The merchant bankers should act as ________ of the investor's money and put a lot of responsibility on them. Correct Answer Custodian Question When are VCF's entitled to get its units listed on stock exchange? Correct Answer After expiration of 3 years form date of issuance of units Question What are the general obligations of mutual fund ? Correct Answer Every AMC should maintain proper books of accounts , Financial year for all schemes to end as on March 31 each year , Every mutual fund shall have the annual statements audited by auditor
Question Describe some of the various types of mutual funds schemes offered?

Correct Answer

Open ended vs. closed ended , Pure income schemes , Tax saving schemes

Question How much should be the minimum net worth of an AMC? Correct Answer Not less than 10 crores Your Answer Not less than 10 crores Select The Blank Question Cash Corporate benefit such as dividend / interest received is credited through ________ facility. Correct Answer ECS Question What should be done if the address of investor changes? Correct Answer Inform DP and update records , Inform different companies Question What is mortgage backed securitisation? Correct Answer Securitisation dealing with mortgages

Question What is the most common complaint of the investors? Correct Answer Non receipt of refund orders and allotment advise Question The company intending to buy back their shares must open a ________ account as per SEBI regulations. Correct Answer Escrow Question To open a DP account, following things are required :Correct Answer Proof of identity , Proof of address , Photograph

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Match The Following

Match The Following Question Correct Answer Your Answer

ISIN Unique identification number for security Unique identification number for security

WDM Market for pure debt instruments Market for pure debt instruments

NSE SET up by IDBI and other financial institutions SET up by IDBI and other financial institutions

custodian Helps register and safeguard the securities of its clients Helps register and safeguard the securities of its clients

Select The Blank Question Not more than ________ of funds may be invested by way of subscription to IPO of the company who's share are proposed to be listed. Correct Answer 0.25 Your Answer 0.2

First stage financing:-

Provided to expand initial capital

Overall economic conditions : Factor for obtaining value of a firm Minimization of taxes :- Investors ensures at the time of structuring the deal RS 25000 :-SEBI application fee Question: Securitised assets give originators the ability to pass on or eliminate credit, interest rate and lending risks associated with the balance sheet funding. Correct Answer: TRUE Multiple Choice Single Answer Question: What is the fee charged for making an application to the takeover panel for seeking exemption Correct Answer: Rs. 25000/Question: ________ operates both primary and secondary markets for CPs by quoting its bid and offering prices. Correct Answer: DFHI Multiple Choice Single Answer Question: What is a Point of sale terminal? Correct Answer: Mechanism for collecting debit card payments Question: What was the objective of the Kumarmangalam Birla Committee on Corporate Governance? Correct Answer: Enhancement of the long term shareholder's value at the same time protecting the interests of the other shareholders Question: Whose names appear in the register of the company. Correct Answer: 45 0.1 Government decided to pay dividend 0.15 MF cannot invest as percentage of NAV in debt instrument issued by single issuer annual statement of accounts of MF

To be audited by auditor Rs. 8000 crores Current shortfall in UTI schemes Question: What are the stages in the process of book building broadly divided into? Correct Answer: Syndicate formation, Issue process, IPO